Role of CPA Forensic Accounting in the Modern World
Of late, the demand for CPA forensic accounting seems to be on the rise. This can be observed from increase in searches on topics such as “importance of a CPA forensic New York, what to look for to get the best forensic accountant New Jersey” and others. A forensic accountant offers more than the traditional accounting which entailed maintaining proper financial records and ensuring Generally Accepted Accounting Principles (GAAP) are adhered to the letter. The accountant goes deeper and probes anomalies, malpractices, frauds and more. Cases handled by the forensic accountant include the following:
Litigation Support is among the key functions of forensic accounting. The accountant investigates accounts and financial statements of people involved in financial tussle or disagreement. Common cases include divorce settlement, death of a business partner, breach of contract, shareholder dispute, family feuds, contesting a will and more. CPA forensic New Jersey will peruse the records to see if there was any unusual business transaction. Also, he confirms that every procedure was followed. The exercises help in quantifying damages or losses.
This service mainly targets activities of criminal nature. In such cases, a party to the transaction(s) will have defrauded or taken advantage of another. The CPA forensic accountant New York will go through the account to verify whether any illegal transactions were carried out. It is also upon him to come up with the exact figure that is under contention or missing. Areas covered include business valuation, employee fraud, insurance fraud, money laundering, advance fee, securities fraud, kickbacks, payment to fictitious people, and more.
Computer forensic accounting is a relatively new practice. However, it is becoming quite popular as accounting and financial record keeping become paperless. Business transactions are carried out online leading to increased usage of the internet and computers. The CPA forensic investigates cases usually referred to as e-fraud (electronic fraud). This entails checking the online transactions, identifying illegal or unauthorized entries, and also unethical practices.
The above is a brief summary of the cases handled by a CPA forensic accountant New York. The changing business environment has made the services highly sort after. Cases of business fraud, money laundering, and financial disputes are on the rise. Financial record keeping has become computerized. This has led to a new wave of cyber crime which targets accounts and financial statements. A CPA forensic accountant New Jersey helps in verifying that business valuations and transactions are done according to regulation. To get the best forensic accounting services it is vital to deal with a reputable firm.